PCE Price Index

## What this measures

This measures the Personal Consumption Expenditures Price Index, a monthly gauge of the prices people in the United States pay for goods and services. It tracks inflation across a wide range of consumer expenses and reflects changes in spending behavior when prices shift.

## Why it matters

The Federal Reserve uses this index as its preferred measure of inflation, making it a key input to monetary policy decisions that affect borrowing costs, investment returns and the operating environment for organizations. Understanding where this index stands helps stewards anticipate interest rate moves and adjust plans for wage pressures, input costs and demand conditions.

## How to read it

The index is set to 100 in 2017; rising values indicate inflation and falling values indicate deflation. Compare month-to-month changes to see how quickly prices are rising or cooling, and compare the level to past periods to measure cumulative price growth.

## What it does not say

This index does not measure the prices businesses pay for production inputs or the rate of wage growth. It also does not forecast future inflation or indicate whether current price changes are temporary or persistent.

## Source

The Bureau of Economic Analysis publishes this series monthly as a seasonally adjusted chain-type index. Palanor pulls it from the FRED API at the Federal Reserve Bank of St. Louis nightly.